WisdomTree India Earnings Fund ETF

EPI

Market cap $2.17B

India is likely ​to see below-average ‌monsoon rains for the first time ​in three ​years in 2026, ⁠the government said ​on Friday, ​stoking concerns over farm output and growth ​in Asia's ​third-largest economy.

Indian stocks are on track for their first annual decline in more than a decade, according to a Reuters poll of equity analysts, as sustained foreign investor outflows and limited participation in the global artificial intelligence (AI) rally weigh heavily on market sentiment. Benchmark equity indices in the world's fastest-growing major economy have underperformed most global peers this year.

The Reserve Bank of India's three-year dollar/rupee buy-sell swap auction received strong investor demand on Tuesday, with total bids reaching nearly $10 billion, almost double the size of the auction. The central bank accepted 141 bids in the foreign exchange swap auction, while receiving a total of 254 bids worth $9.8 billion.

James Thom, Senior Investment Director of Asia Equities at Aberdeen Investments, doesn't believe that the current weakness in the Indian rupee is a repeat of 2013 'taper tantrum' scenario. He adds that some level of government intervention is needed to shore up investor confidence in the country's currency and equity markets.

Asia's smaller companies have delivered stronger returns than the region's large-cap stocks over the past five years, while also offering lower volatility and broader sector exposure, according to HSBC Asset Management. The firm said Asia small-cap stocks outperformed their large-cap counterparts by nearly 3% annualised at the index level over the period.

Some parts of India are grappling with power cuts as record-breaking heat has pushed electricity demand ​to an all-time high in excess of 270 gigawatts, spurring a ‌government call for consumers to limit use.

India's youthful population is more interested in domestic consumption than citizens in export-focused nations like China and Japan. That should drive growth for local businesses.

Indian capital market stocks have emerged as one of the strongest-performing pockets of the market over the past year. The muted benchmark index performance has done nothing to limit the rally.

The WisdomTree India Earnings Fund ETF offers targeted exposure to India's high-growth equities using an earnings-focused selection process. EPI maintains competitive valuations versus other emerging markets, despite India's recent bull run and stretched market multiples. India's macro outlook remains robust, with projected 6.6% GDP growth and strong FDI momentum, although inflation risks persist.

The WisdomTree India Earnings Fund ETF offers India exposure via an earnings-weighted methodology, outperforming cheaper peers despite a high 0.84% expense ratio. EPI's portfolio is concentrated in financials, energy, and materials, aligning with India's development cycle but increasing cyclical and policy risk. The fund's structure favors incumbent profit generators over high-multiple growth stocks, making it less speculative but more sensitive to economic cycles.